ABSTRACT
The Association of South East Asian Nations (ASEAN) is in many respects a pioneer. As the premier regional organization of the developing world it has for many years played the role of leadership by example. The ASEAN Free Trade Area (AFTA), although not the first agreement of its type, represented a goal and a vision which struck a chord internationally and inspired others to follow this lead. The free trade provisions of the Mercosur treaty are an example in point. With the ASEAN Investment Area (AIA), the Association has struck boldly into the political and economic wilderness, for no regional grouping — whether in the industrialized or developing worlds — has yet created the fully-integrated investment-supporting environment that is envisaged by this proposal. The goal of an AIA was first declared by the ASEAN Heads of Government at the Fifth ASEAN Summit in 1995:
ASEAN shall work towards establishing an ASEAN investment region which will help enhance the area's attractiveness and competitiveness for promoting direct investment. The promotion of direct investment into and amongst ASEAN Member Countries will help in the development and growth of ASEAN economies. In this regard, ASEAN shall implement, among other investment measures, an ASEAN Plan of Action on Cooperation and Promotion of Foreign Direct Investment and Intra-ASEAN Investment.
